Why Cement Costs More in Kashmir and What Can Be Done?

In the Kashmir Valley, cement is more than a construction material—it is the foundation for rebuilding lives, restoring heritage, and enabling new growth. From the repair of centuries-old shrines, to the construction of schools, homes, and roads in places like Baramulla and Kulgam, cement is quietly shaping the region’s future. And yet, the very material that makes progress possible is often priced bit beyond the reach of ordinary people.
Across Kashmir, the cost of a 50-kg bag of cement ranges from Rs 470 to Rs 540, depending on the location and time of year—well above average prices in the plains. This price gap is not merely due to demand, but rather a complex web of logistical, industrial, and regulatory factors that remain unaddressed.
The Weight of Terrain and Access
Kashmir’s topography—picturesque but challenging—plays a significant role in cement pricing. Though cement is manufactured locally by companies such as Khyber Cement, TCI Max, Saifco Cements, and Jhelum Cements, most of these plants are concentrated in the Pulwama-Khrew belt. From there, distribution across the Valley—from Shopian to Kupwara—faces frequent logistical hurdles.
Weather-related disruptions, congestion along the Jammu-Srinagar National Highway, and poor connectivity to remote districts all increase transport costs. Cement must be transported in bulk under tight timelines, with added expenses for unloading, storage, and dealer-level handling.
During winter, the problem worsens. Freight costs rise when snowfall or landslides slow movement. In places like Uri or Gurez, contractors often report delays in material delivery by weeks, forcing them to purchase cement at inflated rates from stockists or black-market sources.
Fewer Players, Higher Prices
Kashmir has a limited number of active cement producers. While a few national brands like JK Cement, ACC, and Ambuja operate via dealers, they do not maintain major manufacturing units within the Valley. As a result, local producers cater to most of the demand—but without much competitive pressure.
This limited competition, especially during peak construction seasons (spring to early autumn), gives rise to near-uniform price hikes. Although not formally regulated, industry observers say price movements often occur in tandem—fuelled by supply constraints, dealer margins, and seasonal hoarding.
Small contractors and homebuilders frequently cite uneven pricing between districts. A bag of the same cement brand may cost Rs 480 in Srinagar, but Rs 520 or more in Anantnag, once freight and dealer charges are added.
Taxation and Margins Add Up
Cement attracts one of the highest GST rates in India—28%—and this base tax inflates the cost significantly. Add to this the cost of transportation, local levies, handling charges, and distributor commissions, and the retail price quickly rises.
Dealers, often operating with limited warehousing infrastructure, also buffer in risk margins to account for weather delays or delivery disruptions. For an average 1,000-bag project, this cumulative impact can translate to tens of thousands in added cost.
More Than a Material: Cement as Recovery
Cement in Kashmir is inseparable from the story of rebuilding. It is used to restore shrines damaged by time or calamity, raise new classrooms in growing towns like Budgam, and construct guesthouses, shops, and homestays that fuel the tourism economy in Gulmarg and Sonmarg.
Each concrete slab poured is an act of renewal—and a signal of stability. When cement becomes unaffordable, it delays this process. For families saving for years to build a two-room house, or village committees restoring a mosque, high cement prices mean postponement, compromise, or debt.
What Can Be Done?
A few practical interventions—by manufacturers, the government, and citizens—can collectively ease the cost burden without disrupting supply.
Cement companies can decentralize their logistics by setting up smaller distribution yards across central and north Kashmir. Improved local storage and supply planning, especially before winter, can reduce seasonal shortages and opportunistic price hikes. Companies can also explore blended cements (with fly ash or calcined clay), which are more sustainable and often cheaper to produce.
The government, for its part, can enable better connectivity to industrial hubs, ensure fair play through price monitoring mechanisms, and provide freight assistance or infrastructure incentives to producers supplying to remote or high-altitude areas.
At the community level, greater price awareness, collective procurement among small contractors, and the use of certified but lesser-known brands can improve bargaining power. Transparency in dealer pricing and invoicing must be encouraged.
Building Fair, Building Forward
In Kashmir, construction is not just economic—it is deeply emotional. Cement binds more than walls; it binds the dreams of a people seeking stability and growth. From the domes of shrines to the floors of village schools, every structure tells a story of resilience.
It’s time that story isn’t slowed by the silent weight of overpricing. Making cement more affordable won’t just reduce costs—it will cement hope where it’s needed most.
(Author is a PhD scholar at the Indian Institute of Technology Delhi, specializing in digital twin development for the cement industry. Reach out at: [email protected])